Dramatic shift in property price growth

Business owners reliant on their homes for collateral are among those facing a noticeable shift in property values across the country.

The latest CoreLogic hedonic home value index recorded a noticeable slowdown in the once booming Sydney market, with prices easing by 0.1 per cent in September and rising a meagre 0.2 per cent for the last quarter.

For the quarter, that placed Sydney only above the still falling mining markets of Perth (-1.3 per cent) and Darwin (-4.0 per cent).

The fastest growing home values in Australia can now be found in Hobart, which saw 3.4 per cent growth for the quarter – ahead of Melbourne (up 2.0 per cent) and Canberra (up 1.3 per cent).

Hobart also came up trumps in the more reliable yearly growth rate, surging by 14.3 per cent to a median of $391,618.

Melbourne’s residential property market grew by 12.1 per cent, while Sydney still posted a 10.5 increase on the back of stronger growth rates earlier in the year.

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Meanwhile, Canberra values were up 7.8 per cent over the last 12 months, Adelaide up 5.0 per cent, and Brisbane increased to a more modest 2.9 per cent.

Perth continued its slide, falling 2.9 per cent, while Darwin remained as the country’s weakest property market, falling 4.7 per cent for the year.

Overall, though, CoureLogic’s head of research Tim Lawless was optimistic that significant price falls will not come to fruition.

“While CoreLogic anticipates that dwelling values will trend lower across Sydney and potentially Melbourne later this year or next, strong demand for housing, along with mortgage rates anticipated to remain low, will help to support a floor under housing prices going forward,” he said.